Buying a new electric vehicle remains a major financial stretch, if not cost-prohibitive, for most Triad consumers.
According to consumer automobile research group Edmonds, the retail price for a basic 2023 model EV — such as a Smart EQ, Nissan Leaf, Mini Hardtop 2 and Chevrolet Bolt — can range from $23,900 to $31,000, while a basic Tesla Model 3 goes for about $47,000.
Meanwhile, a “super luxury” EV, such as a Porsche Taycan 4A, goes for $187,000 — a large down payment on a three-bedroom, two-bathroom single-family home in the Triad.
Yet, several banks and credit unions serving the Triad are plugging in EV loan pitches with interest rates as low as 1.99%.
For example, Truist Financial Corp. recently launched an email campaign to customers with the tagline, “EV financing that’s always up to speed” at 3.38% APR for those “with excellent credit.”
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The bank’s hook is appealing to consumers who are “tired of high gas prices” with the benefits “of going electric ... that’s better for the planet and great for your wallet.”
Truist said in a statement that “as EV demand and production continues to grow in the U.S., EV loans continue to make up a proportional, but growing segment of Truist’s direct (online, in branch) and indirect (dealerships) auto loan originations.”
Truist said it “uses the same underwriting criteria for EVs as we do for traditional, internal combustion engine vehicles.”
“The new marketing campaign is to raise awareness with clients of the financing available, low interest rates, quick loan decisions — including same-day funding in many cases — and an easy user experience so our clients can secure an EV auto loan when and how they prefer.”
Meanwhile, Bank of America Corp. is offering car loan rates of 4.24% APR for a new EV, 4.44% for a used EV — both through a dealership — and 5.19% for refinancing.
“Driving an electric vehicle means you would be contributing to environmental sustainability since electric vehicles release fewer harmful carbon dioxide emissions,” Bank of America said on its website.
“EVs may even be recharged using renewable energy, which can help increase energy independence.”
Bank of America said part of its campaign is a reflection that EVs “have become more affordable as technology improves and automobile manufacturers meet the increased demand with additional electric vehicles models in the market.”
There are about 60 different EV models available in the North American marketplace.
“In addition, the number of charging stations is growing every year to provide more options for your travel needs,” Bank of America said.
Wells Fargo & Co. said that its Wells Fargo Auto unit “is the leading lender of new electric vehicles.”
“We work with nonprofit organizations to help raise awareness and understanding of the benefits of EVs.
“This support takes the form of sponsoring special events like National Drive Electric Week, as well as educational webinars for consumers and dealers.
“It’s one of the many ways Wells Fargo is working to bring its commitment to sustainability to life,” the bank said.
Charging interest
According to Argonne National Laboratory, Americans purchased a record-high number of both hybrid and plug-in vehicles in February with hybrid purchases up 10.2% year over year, while plug-in purchases rose 11.7%.
The main impetus for emphasizing EV production and car loans appears to be an executive order that President Joe Biden signed in August 2021 stating that half of all new vehicles sold in the U.S. should be electric by 2030.
The executive order has spurred automobile manufacturers, such as Ford, General Motors and Stellantis (which owns Chrysler and Fiat), to make investments in EV production plants to meet the 2030 goal.
The Triad and Carolina Core’s economies and workforces will benefit significantly from the EV push from two recent economic-development announcements.
Toyota Motor North America Inc.’s planned $1.29 billion electric battery production plant is expected to have 1,750 employees when production begins in 2025 at the Greensboro-Randolph Megasite.
Toyota Battery Manufacturing N.C. will build lithium batteries for hybrid and electric vehicles. A second production phase could generate an additional 4,500 to 5,000 jobs.
At $4.7 billion, the second phase could become the largest economic development project in state history.
Meanwhile, North Carolina’s decades-long quest to secure an automobile manufacturer finally came to fruition with Vietnamese electric vehicle startup VinFast‘s plans for a $4 billion campus within a 1,977-acre megasite near Sanford.
The first phase will represent a $2 billion capital investment. The manufacturer would create at least 7,500 jobs from 2023 to 2027 at an annual average wage of $51,096.
VinFast would produce a seven-passenger full-size SUV and a five-passenger mid-sized model — and electric battery components at the plant.
The plan is to start production in July 2024 with the goal of building about 150,000 vehicles annually in phase 1 and about 200,000 annually at full production.
Elsewhere in the Southeast, Volkswagen last week began production at a Chattanooga, Tenn., plant of its first EVs assembled in the U.S.
According to the Associated Press, the plant is projected to produce 7,000 cars per month of its ID.4 electric compact SUV by the fourth quarter. Volkswagen has hired more than 1,000 production employees where it already had a workforce of more than 4,000.
On July 22, Georgia and local governments in Savannah agreed to give Hyundai Motor Group incentives worth $1.8 billion to build electric vehicles in the state.
According to AP, the company announced in May it will invest $5.5 billion in its first U.S. plant dedicated to EVs. It’s the largest economic development deal in Georgia’s history, with a promise of creating 8,100 direct jobs.